Discover Bank offers a single checking account that doesn’t charge monthly fees or require minimum deposits. As an online bank, you can expect a user-friendly platform to manage your checking account. Its mobile app is well-reviewed in the Google Play Store and Apple’s App Store. You will also have access to more than 60,000 free ATMs. The account is best for someone who is comfortable banking online and prefers making purchases with a debit card. Overall, Discover earned 4.1 out of 5 stars in the latest review of the bank.
Discover’s checking account
Discover’s checking account offering includes:
|Account name||APY||Minimum deposit||Monthly fee|
|Cashback Debit Account||None||None||$0|
Note: The APY (annual percentage yield) shown is as of Oct. 26, 2020.
Let’s take a closer look at their checking account so you can determine if it is a good fit for you.
Discover Cashback Debit Account
Discover offers the Cashback Debit account. As the name suggests, you’ll enjoy cash back on eligible purchases made with your debit card. It can be a worthwhile reward if you put the majority of your spending on a debit card. Each month, you will be eligible to receive 1 percent cash back on up to $3,000 in debit card purchases. If you reached the $3,000 reward limit each month for the year, then you would earn $360 in total cash back.
Discover mostly only operates online, but you will have access to more than 60,000 free ATMs around the country. Plus, you’ll have 24/7 access to a bank representative over the phone.
The Discover app helps you manage your account on the go. You’ll be able to freeze your debit card, deposit checks, set up travel notifications and find out more account information from the app.
Discover Cashback Debit Account fees
As you choose a checking account, it is important to pay close attention to the fees. With most checking accounts, the hidden fees can cut into your savings. However, the Discover Cashback Debit account comes without monthly fees or many other fees other banks charge.
With this account, you won’t have to worry about monthly maintenance fees, replacement card fees, standard check fees, online bill pay fees, insufficient fund fees, and more. You might run into a service charge for a wire transfer, however. Discover charges $30 for each outgoing wire transfer sent from your account. You could also run into ATM fees if you can’t make it to one of the 60,000 fee-free ATMs and the ATM operator charges a toll.
Discover Cashback Debit Account promotions and bonuses
Although there is no specific sign-up cash bonus that will kickstart your banking experience with Discover, you will enjoy the cash back features. If you prefer to use a debit card for your everyday purchases, then this is a great opportunity to enjoy cash back without opening a new credit card.
Alternatives to Discover Cashback Debit Account
The cash back feature of the Discover Cashback Debit account makes it a worthwhile option to consider. However, some of us may prefer to reap our cash back rewards with credit cards that may offer more bang for our buck. If that’s the case, you may want to consider an interest-bearing checking account. You’ll be able to earn some return on your checking account funds while allowing your spending to be rewarded at a higher rate through the right credit card.
If you are looking for a bank that can service your account in-person, then Discover is not a great fit. You may want to consider larger banks with a widespread physical bank presence such as Bank of America or Wells Fargo. But, you may pay more fees and not get cash-back options.
Featured image by Jonathan Weiss of Shutterstock